AUD/USD Surges Amid Key Events and Macro Data
The AUD/USD exchange rate has surged to its highest level since June 17, driven by investor reaction to several key events. The pair has jumped by over 2.4% from its lowest point in June as focus shifts to upcoming macro data and events.
One major event that contributed to the increase was the Federal Reserve's decision to leave interest rates unchanged between 3.50% and 3.75%. Some officials voted for a rate hike, citing elevated consumer inflation above the 2% target for over five years.
The AUD/USD pair also reacted positively to President Donald Trump's decision to halt planned attacks against Iranian power plants and critical infrastructure. This move avoided potential disruptions in the Strait of Hormuz and Bab el-Mandeb, which would have affected oil and gas projects in the region.
Market participants are now looking forward to key data releases, including the US manufacturing PMI report by the ISM and S&P Global. Economists expect a PMI reading above 50, indicating sector growth. Australia's household spending data on Tuesday and the US nonfarm payrolls (NFP) report on Friday will also be closely watched.
The AUD/USD technical analysis suggests that the pair has formed an ascending channel and moved above the 50-day Exponential Moving Average (EMA). However, a bearish flag pattern is also present, indicating potential for a downward trend in the near term. A move above the key resistance at 0.7100 could signal further gains.